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European firm adjustment during times of economic crisis

Author

Listed:
  • Fabiani, Silvia
  • Lamo, Ana
  • Messina, Julián
  • Rõõm, Tairi

Abstract

This paper exploits a unique cross-country, firm-level survey to study the responses of European firms to the sharp demand and credit contraction triggered by the global Great Recession of 2009. The analysis reveals that cost reduction JEL Classification: J30, J32, J33, J51

Suggested Citation

  • Fabiani, Silvia & Lamo, Ana & Messina, Julián & Rõõm, Tairi, 2015. "European firm adjustment during times of economic crisis," Working Paper Series 1778, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:20151778
    Note: 337346
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    References listed on IDEAS

    as
    1. Holden Steinar & Wulfsberg Fredrik, 2008. "Downward Nominal Wage Rigidity in the OECD," The B.E. Journal of Macroeconomics, De Gruyter, vol. 8(1), pages 1-50, April.
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    3. Luigi Guiso & Luigi Pistaferri & Fabiano Schivardi, 2005. "Insurance within the Firm," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 1054-1087, October.
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    7. Fehr, Ernst & Goette, Lorenz, 2005. "Robustness and real consequences of nominal wage rigidity," Journal of Monetary Economics, Elsevier, vol. 52(4), pages 779-804, May.
    8. Jan Babecký & Philip Du Caju & Theodora Kosma & Martina Lawless & Julián Messina & Tairi Rõõm, 2010. "Downward Nominal and Real Wage Rigidity: Survey Evidence from European Firms," Scandinavian Journal of Economics, Wiley Blackwell, vol. 112(4), pages 884-910, December.
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    10. repec:nbr:nberre:0126 is not listed on IDEAS
    11. Radowski, Daniel & Bonin, Holger, 2010. "Downward nominal wage rigidity in services: Direct evidence from a firm survey," Economics Letters, Elsevier, vol. 106(3), pages 227-229, March.
    12. Bertola, Giuseppe, 1999. "Microeconomic perspectives on aggregate labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 45, pages 2985-3028, Elsevier.
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    More about this item

    Keywords

    demand and credit shocks; employment; European Union; firm survey; labour costs; margins; wage cuts;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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